“The price problem of Maotai has seriously infringed upon the interests of shareholders. Our shareholders are ready to sue the management of Maotai. We want to ask whether Maotai has specific measures for dealers.”
“Does Feitian Maotai have the pricing power? If not, who has the pricing power?”
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On April 29, the annual report of Kweichow Moutai Co.Ltd(600519) 2021 and the performance description of the first quarter of 2022 will receive extensive attention, and the majority of investors will ask sharp questions. Ding Xiongjun, chairman of Kweichow Moutai Co.Ltd(600519) board of directors and other senior executives, faced the concerns of investors and answered them one by one.
Source: screenshot of performance description meeting
response to overall development
Ding Xiongjun introduced that in 2021, Kweichow Moutai Co.Ltd(600519) achieved a total operating revenue of 109.4 billion yuan, an increase of 11.71% year-on-year, exceeding the annual revenue target of 108.3 billion yuan; The net profit attributable to shareholders of listed companies was 54.62 billion yuan, a year-on-year increase of 12.34%.
Kweichow Moutai Co.Ltd(600519) in the annual report, it is proposed that the total operating revenue in 2022 will increase by about 15% compared with the previous year, and the development goal of capital construction investment of 6.969 billion yuan will be completed.
Ding Xiongjun said that this goal has been scientifically and rigorously calculated, and the company has full confidence.
In the first quarter of this year, Kweichow Moutai Co.Ltd(600519) achieved an operating revenue of 32.296 billion yuan, a year-on-year increase of 18.43%; The net profit attributable to the parent company was 17.245 billion yuan, a year-on-year increase of 23.58%, which exceeded the company’s previous expectations and hit a record high in a single quarter.
Ding Xiongjun said that the stars live up to the passers-by. Some achievements have been reflected in the first quarter of 2022, and some measures will not appear until later. “In the first quarter, the company achieved stable production, stable price, excellent quality and excellent performance. It recorded the largest single quarter growth in recent three years and the largest single quarter growth since Maotai was listed. We are full of confidence in the potential and aftereffect of Maotai’s development.”
respond to price questions
Ding Xiongjun introduced that Kweichow Moutai Co.Ltd(600519) now has about 165000 shareholders, and there are more than 10 million “Xiaomao powder” registered on I Maotai recently. “We collected 67 questions from 23 investors and shareholders.”
Some investors said that the price problem of Maotai has seriously infringed upon the interests of shareholders. Shareholders have prepared to sue the management of Maotai. Do Maotai have any specific measures for dealers?
In this regard, Ding Xiongjun said: “The formation of price has its own law, and the state also has special laws and regulations to manage it. Maotai has always been in accordance with the law and the principle of rule of law. In addition, the company also follows the principle of marketization. The investor should pay attention to the ex factory price of Feitian Maotai of 969 yuan, the official guidance price of 1499 yuan, and the terminal price may be higher than 1499 yuan. He hopes to attribute the profits higher than 1499 yuan to the shareholders. I can understand his idea very much. For this matter, I think the solution is two words – reform. But the reform is systematic, not simply raising or lowering prices. The fundamental of reform is to continue modern management. “
The key to the reform of marketing system is channel. Ding Xiongjun said that the company has made a lot of efforts in terms of channels. It should not only recognize the contributions made by some channels in the past to Maotai, but also innovate some new channels and reform some channels. The most important thing is to let Maotai return to the commodity attribute, and the price can truly reflect the needs of consumers.
“In terms of product system reform, we constantly optimize the product structure system, build a brand structure with product price matching, clear levels and reasonable gradients, and strengthen Maotai’s noble products, treasures and boutique series. In the future, Maotai and Maotai series will be available in various price bands of 200 yuan, 200500 yuan, 500100 yuan and 1000 yuan. We should make comprehensive measures and make a good combination.” Ding Xiongjun said.
In addition, some investors asked that Wuliangye Yibin Co.Ltd(000858) and Luzhou Laojiao Co.Ltd(000568) can be priced freely, but Feitian Maotai has not raised the price for four years. Does Feitian Maotai have the pricing right? If not, who has the pricing power?
In this regard, Ding Xiongjun said: “the pricing power is in the hands of the market, and the price of Moutai is determined by the market.”
response I subsequent layout of Maotai
Previously, Kweichow Moutai Co.Ltd(600519) launched a new e-commerce platform, I Maotai, and a group of “Mao fans” ranked I Maotai first in the free list of Apple App store with enthusiasm.
In this regard, Ding Xiongjun said that consumers’ demand for Maotai has been very strong. “I as of April 28, the total number of registered people in Maotai exceeded 11.46 million, with a total of 200 million appointments, with an average of 7.12 million appointments per day. The demand for Maotai liquor and its series is very hot.”
“I a total of 770000 bottles of wine have been put into Maotai. Some consumers say they are making an appointment every day, but they haven’t applied for it. So do I. When I apply for it one day, I will send you the screenshot.” Ding Xiaojun said.
“I Maotai, our consideration is to let it carry four functions – the disseminator of Maotai culture, the linker of the whole chain from products to commodities, the practitioner of digital marketing and the collaborator of channels.” At the scene, Ding Xiongjun also played a key role. “Now I Maotai looks like a purchase application platform and reservation platform, but there will be other functions after it is officially launched on May 19. I’ll give you a detailed introduction at that time.”
Ding Xiongjun said that everyone is very concerned about I Maotai, and it really deserves attention. “Our technical team of more than 1000 people has been working for more than half a year, and it will take quite a while to make I Maotai a good platform according to the above functions. I hope this platform can meet the expectations of the majority of Lbx Pharmacy Chain Joint Stock Company(603883) on Maotai to the greatest extent in the future.”
